Are you looking to increase your sales force size but you are not sure exactly how many reps you should add (or you can justify)? Or are you under pressure to decrease the size of your sales force but you are not sure how many to cut (or even if it is the right thing to do)?
You’ll find the answers to these questions here.
Sales Force Sizing as a Process
The sales force size is not something that should be changed often. A stable sales force size and structure is something to be valued. However, if there is a significant change to your products or your market you must ask the questions, “do we have the right number of reps to support our products and customers?”.
Are you facing any other possible changes to your business?
- Merger of two companies
- Launch of a new product
- Loss of a major product
- Loss of patent protection for a key product
- Launch of a competitors product
- Significant line extensions
Any of these changes will require a review of the sales force size.
Sales Force Size Cannot be Reviewed in Isolation
From our consulting project work Cozmix has found that the sales force headcount cannot be analyzed in isolation. It must also be reviewed along with the sales force team structure and effort allocation across the portfolio (or customers). All three factors (size, structure and effort allocation) are highly dependent upon each other. For example, the optimal allocation of selling effort changes dramatically as the team size changes. Which in turn can have implications for the most appropriate team structure. The good news is that even if there are product losses or adverse events in the near future, the impact on headcount can often be reduced or negated by re-allocating sales effort.
This interrelated nature of sales force size, structure and effort allocation requires an integrated analysis process. Cozmix has developed a robust integrated approach. This has been utilized in over thirty five countries and has consistently added significant value for our customers. Looking back over the last five years, the average improvement in projected profitability resulting from Cozmix’ projects has been 14%.
At the end of a Cozmix Sales Force Sizing project you will have clear answers to following questions:
- What headcount do we need to maximize the long-term profitability of the business?
- What is the difference between the optimal headcount in the short-term and long-term?
- What is the impact on the sales and profitability of the business if we add or reduce reps?
- Can we re-allocate our selling effort and make more sales and profit with our current headcount?
- If we add headcount and our assumptions are wrong, how wrong do they have to be before we have made a bad decision (i.e. what is the margin or error)?
- How should we structure the teams to support the products and customers at this new team size?
- What does this new team size mean for the coverage and frequency against key customer segments?
- How does the promotional grid change as a result of this team size?
Imagine having all the answers to these questions. When you present the case for adding (or maintaining) headcount you will have the analysis to back up your requests.
Cozmix also helps you gain approval for any changes. This can take the form of helping to create supporting material or even presenting to HQ.
Call or contact Cozmix today (+1-(321)-251-1300) to discuss your sales force sizing challenges.